Linde Group. January - March 2006 Conference Call. April 26, Dr Peter Diesch, CFO

Transcription

1 January - March 2006 Conference Call April 26, 2006 Dr Peter Diesch, CFO

2 Contents 04 Linde Group 09 Gas & Engineering 11 Linde Gas 19 Linde Engineering 22 Material Handling 2

3 Disclaimer This investor presentation has been prepared independently by Linde AG ( Linde ). The presentation contains statements which address such key issues as Linde s growth strategy, future financial results, market positions, and product development. Such statements should be carefully considered, and it should be understood that many factors could cause forecast and actual results to differ from these statements. These factors include, but are not limited to price fluctuations, currency fluctuations, developments in raw material and personnel costs, physical and environmental risks, legal and legislative issues, fiscal, and other regulatory measures. Stated competitive positions are based on management estimates supported by information provided by specialised external agencies. 3

4 Linde AG adopted the mandatory IFRIC 4 Determining whether an arrangement contains a lease for the first time in January 1st, Due to the respectively required change in accounting policy, the comparative figures have been restated ( restated ). 4

5 Impact of changes in accounting policy Group income statement in million January to March 2005 Year 2005 Net income after minority interests - as reported Previously unrecognized actuarial gains/losses in relation to the measurement of pension obligations (IAS 19) 2 - Adjustments to net income due to the change in accounting policy for certain plants reclassified as finance leases (IFRIC 4) Changes to Sales Changes to Cost of Sales Changes to interest income from leasing contracts Deferred tax expense -1-7 Net income after minority interests - restated

6 Key Facts Strong Q1 figures with double digit growth in sales and EBIT Robust market growth and margin increases in all segments Operating Cash Flow increased by 77 million to 214 million EPS of 1.12 (2005: 0.75), up 49.3% Outlook for FY 2006 unchanged: Increase in sales and EBIT 6

7 Income Statement Sales increase 14.0% to 2,415 million EBIT up by 36.4% to 225 million In million Q1 05 Q1 06 Sales 2,118 2, % EBITDA % EBIT % Financial result % EBT % Net income % 7

8 Key Financials In million Operating cash flow Capex (excl. financial assets) Net interest EBITDA / Net interest Net debt* Gearing ** Q , Q , * Financial debt cash & cash equivalents and securities (excl. restricted cash) ** Net debt / equity 8

9 Gas & Engineering

10 Gas & Engineering Sales increase 12.1% to 1,494 million EBIT up by 24.9% to 211 million In million Q1 05 Q1 06 Sales 1,333 1, % EBITDA % Margin 20.1% 21.1% EBIT % Margin 12.7% 14.1% EBT % 10

11 Linde Gas Sales gain 16.1% to 1,198 million EBIT increases by 20.0% to 192 million EBIT margin up 0,5% year over year In million Q1 05 Q1 06 Sales 1,032 1, % EBITDA % Margin 24.9% 24.5% EBIT % Margin 15.5% 16.0% EBT % 11

12 Linde Gas - Sales bridge Q1 2006: underlying growth of 11.7% in Mio. +16,1% +11,7% +3,5% -0,2% +1,1% Q Currency Consolidation Natural Gas Volume/Price Q

13 Linde Gas Regional Sales Strong growth in all regions, acceleration in Western Europe Asia/Pacific and Eastern Europe again leading growth regions In million Q1 05 Q1 06 excl. currency Germany % 10.9% Europe excl. Germany % 11.3% North America % 10.8% South America % 12.4% Asia Pacific % 37.0% 13

14 Linde Gas Product Segment Sales Strong sales growth across all product segments On-site business going from strength to strength Another good quarter for bulk and cylinder segments In million Q1 05 Q1 06 * * excl. currency Bulk % 11.8% Cylinder % 7.6% On-site % 27.7% Healthcare % 7.4% * % based on k 14

15 Linde Gas - Healthcare Sales increased by 12.4% (+7.4% excl. currency) In million Q1 06 Q1 Q1 excl. currency Institutional % 4.0% Homecare % 11.0% INO % 13.0% Healthcare % 7.4% 15

16 Linde Gas Thriving in a solidly growing market Growth momentum in the gas industry remains strong Linde Gas underlying sales growth of 11.7% relies on solid fundamentals Growth regions Eastern Europe and Asia deliver ongoing strong figures Western Europe showing accelerating momentum On-site and Healthcare are structural growth drivers Cylinder business further benefits from sales initiatives EBIT margin of 16.0%, up 0.5%, reflects positive contributions from GAP program BOC would be a perfect fit for our successful gas operations 16

17 Linde Gas Outlook for FY 2006 unchanged: Increase in sales and EBIT 17

18 Linde Engineering: ongoing strong business environment Quarterly sales of 316m slightly below last year s high level EBIT strongly up by 12.5% to 18m Taking profit of strong industry background In million Q1 05 Q1 06 Sales % EBITDA % Margin 5.6% 7.0% EBIT % Margin 4.5% 5.7% EBT % 18

19 Linde Engineering ongoing strong business environment - Order intake increased another 8.0% to 502m - Q1 order intake by segment: Others 14% Olefins 9% Natural Gas 12% Air Separation 41% Syngas 24% Order backlog standing at EUR 3,477 bn (+64.8%) 19

20 Linde Engineering Positive trends in all technology segments: Air Separation: Booming demand from emerging economies Olefins: build-up of capacity in Middle East, Russia and Asia Syngas: clean energy impact and strengthening momentum in emerging markets Natural Gas: break-through of LNG as attractive alternative for remote gas fields Outlook for FY 2006 unchanged: Sales and EBIT above last year 20

21 Material Handling

22 Material Handling Sales gain 19.6% to 922 million EBIT leaps by 80.8% to 47 million 1.7% increase in EBIT margin to 5.1% In million Q1 05 Q1 06 Sales % EBITDA % Margin 13.7% 13.9% EBIT % Margin 3.4% 5.1% EBT % 22

23 Material Handling Q market growth (order intake) vs Q % 50% 40% Counterbalance Trucks 42% 53% Warehouse Trucks 30% 24% 20% 17% 12% 13% 15% 16% 15% 10% 0% -10% Europe Eastern Europe 6% 7% 5% 2% N. America S. America Asia Others World -20% Total -16% 15% 46% 6% 19% 7% 7% 10% 23

24 Material Handling: Good progress in a supporting market Markets showing robust and widespread growth Asia and Eastern Europe have structural need for additional fleet capacities Western European markets show stronger than expected first quarter Expect ongoing robust growth in 2006, driven by Asia and Eastern Europe Internal optimisation program GO is progressing well GO supports MH towards its ROCE target of 16% in 2007 Emerging markets like Eastern Europe and Asia as well as the After-Sales business are key focus areas for profitable growth Numerous initiatives set basis for a more efficient and flexible value chain Bottom line impact of Labour agreements at Still and Linde in Q1 24

25 Material Handling Outlook for FY 2006 unchanged: Increase in sales and significant improvement of operating profit (EBIT) 25

26 Investor Relations Contacts Thomas Eisenlohr, Head of Investor Relations Tel: Robert Schneider Tel: Jo Raja Tel: